Nvidia Seals AI Deals With South Korean Partners
The Spin
Narrative A
The Nvidia-SK Telecom deal is a massive win for AI infrastructure, with a gigawatt-scale AI Cloud set to come online in 2027 that will power sovereign, physical and enterprise AI across Korea and beyond. Memory shortages are real but that only proves demand is outpacing supply — a sign of explosive, sustained growth. Nvidia's fundamentals back this up, with the company expecting over $91 billion in revenue next quarter.
Narrative B
Splashy AI deals can't paper over the fact that supply chains are strained across wafers, packaging and silicon photonics, with no relief in sight for years. Korean markets swung wildly on the news, dropping 3.3% intraday, signaling that investor confidence in this AI buildout is shaky at best. Pouring gigawatts of capacity into an overbought sector while memory shortages persist is a recipe for serious pain down the road.
